Summary: Riesel Industrial Development Corp., Texas Sandy Creek Energy Associates LP; Letter of Credit Mar 12
- Language: English
- Published: March 2012
- Region: Texas
U.S. power plant Sandy Creek Energy sustained damage during a test-firing on Oct. 17, 2011 that has delayed the construction completion date. We are affirming the 'BB-' rating on the project's $835 million first-lien senior secured facility, and revising the outlook to negative from stable. We are also revising the recovery rating to '3' from '2'. The negative outlook reflects uncertainties relating to the cost and scope of the construction delay as well as expected lower gross margins for the project after it begins operations given the reduction in power prices in the ERCOT region as a result of a decline in natural gas prices since the time of the original rating. On Dec. 9, 2011, Standard & Poor's Ratings...
Companies mentioned in this report are: Sandy Creek Energy Associates L.P.
Action: Outlook: Negative
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Sandy Creek Energy Associates L.P.